GREAT COMMERCIAL PANIC.
The golden prospects unfolded in the speech of the chancellor of the exchequer when making his financial statements, and reiterated in that of his majesty at the close of the session, soon vanished away. The causes of this reverse were manifold. The abundance of capital, and the consequent low rate of profit, during the last three years, had greatly increased export manufactures. As the system of country banks continued in operation, this apparent prosperity of manufactures attracted much capital to them; and a system of credit was generated which caused a still further extension. Speculation added its impulse to this system; until, in the course of this year, paper money thrown into circulation, increased the currency beyond what the causes determining the supply of gold could sustain. The exchanges now turned against us; the currency became depreciated; and gold, the sinews of a nation’s prosperity, began to flow out of the country. The Bank of England finding that the demand for gold diminished its stock of coin, contracted its issue of notes and its discounts. In this way, if the state of trade had been good, the currency might have been reduced so as to restore the exchanges to par; but the reduction in quantity took place first among those who had pushed their credit to the utmost; and these persons being unable to meet their engagements became bankrupts. The distress soon reached the bankers themselves. Some of the country banks stopped payment; and apprehensions springing up from thence with respect to the stability of the London banks, caused such a run upon them, that many failed. In the month of December all the usual channels of credit were stopped, and the circulation of the country completely deranged. In this state of affairs several cabinet deliberations took place; and it was at length determined that one and two pound bank notes should be issued for country circulation. This measure was carried into effect on the 16th of December; and an order was also issued to the officers of the Mint to expedite an extraordinary coinage of sovereigns. For one week one hundred and fifty thousand were coined daily. In the meantime meetings were held in London and the great trading towns, in which resolutions were adopted for the support of commercial credit and these had the effect of restoring mutual confidence to a considerable extent. Such was the contrast between the commencement and the close of the present year: it began in visions of prosperity, it closed with a certainty of adversity. The derangement of commercial affairs doubtless arose from the dangerous mania of speculation, aided by a vicious system of making paper money, which increased the currency, drove gold out of the country, and then caused a demand for it in exchange for paper, which it was impossible to meet. The natural consequence was an almost general breaking up of those who depended on paper money, and an approach to its utter annihilation.
THE BURMESE WAR.
GEORGE IV. 1825—1826.
During this year the hostilities against the Burmese were prosecuted actively and successfully, but yet without producing any decisive result. After the successes gained by Sir Archibald Campbell, towards the end of the previous year, he remained unmolested at Rangoon; and the only military operations in that quarter in the month of January were some unimportant skirmishes. During that month it was discovered that the Burmese generalissimo had stationed himself at Donoobew, about fifty miles up the river, where, having drawn to his army all the resources of the Pegu vice-royalty, he prepared himself to sustain an attack. It was now determined by Sir Archibald Campbell, though his invading force was small, and his Siamese allies reluctant to join him, to advance into the interior of the empire. He joined the camp on the 13th of February at Mienza, passing through forests lined with formidable stockades, a deserted country, and destroyed villages. On the 26th he arrived at Soomza, of which the governor of the place gave him possession by retiring from his post. In the meantime, Donoobew had been attacked by a division of the British force which had proceeded thither by water, under Brigadier-general Cotton. The outworks of Donoobew were carried, but the main-work was too strong to risk a further advance, and the troops were withdrawn for a time. By the 18th of March General Campbell crossed the Irrawaddy to the west bank in some of the country canoes, and on the 25th reached Donoobew. He pitched his camp before the extensive works of Maha Bandoola on the 2nd of April. During that morning the enemy kept up a heavy fire on our ranks; but towards noon it ceased. A calm succeeded; but it was the harbinger of a storm. About ten o’clock, when the moon was fast verging towards the horizon, a sharp sound of musketry mingled with war-cries roused the sleeping camp. The soldiers seized their muskets and formed into a line; and this was scarcely effected, when the opposing columns advanced with an intention of turning our right, and at the same time keeping up a distant fire against the left and centre. On their outflanking the right, our two extreme regiments changed front, and by a constant discharge of musketry checked every attempt, so that the assailants were compelled to retreat. A series of various petty actions now took place by river as well as by land; but in the meantime preparations were being made for the attack of the enemy’s works. The mortar-batteries and rockets began their work of destruction on the 1st of April, and on the following day the breaching batteries opened, when two Lascars, who had been left prisoners in the fort, came out to inform Sir Archibald Campbell that Bandoola had been killed the day before by a rocket, and that the garrison, in spite of the remonstrances of the other chiefs, had fled. This information was quite correct; for the enemy had retired, leaving behind them all their guns and a large depot of grain. In this service the British commander was ably seconded by the navy under Captains Alexander and Chads, who assisted in forcing the stockades, capturing the formidable war-boats, and conveying our troops to the best places of attack. After the dispersion of Bandoola’s army, Prome was considered the best place to stop the invading troops, and the utmost energies of the local authorities were employed in fortifying that place and organizing a force for its defence. All the disposable force of the empire was, in fact, concentrated at this spot: a spot memorable for the many battles fought there with the people of Pegu. But all the Burmese preparations were wholly disconcerted by the rapid movement of our army: Sir Archibald Campbell entered Prome on the 25th of April without firing a shot. Before they withdrew, the enemy had set fire to a part of the town, and one quarter of it was reduced to ashes. In their flight, also, the Burmese troops burned and laid waste all the villages in their route, driving thousands of helpless people to the woods. This now became their mode of warfare; and it has been said that Russia in her memorable resistance to the French armies did not offer to the invading hosts such a scene of desolation as did the Burmese empire to the British troops. Neither man nor beast escaped the retiring columns; and heaps of ashes, with groups of howling dogs, alone indicated the spots where villages and towns had stood. While these movements occurred, a series of actions had put the British in possession of the kingdom of Arracan, and the Burmese were totally expelled from Cachar and Assam. Thus terminated the second campaign of this desolating war. The British army took up its winter-quarters at Prome, where cantonments were provided for the troops, and preparations made for future operations. Nor was the Burmese monarch idle; rejecting all overtures made by the British general, troops were levied in every part of the kingdom, and the tributary Shan tribes bordering on China were called on to furnish their contingent force. Before the end of September a disposable force of 70,000 men was ready to act against the British, who threatened to advance on the capital. At the close of the year an armistice was agreed upon, and negociations were entered into for a definitive treaty of peace; but as there was no honesty on the side of the Burmese, and no lack of penetration on that of the British, all proposals failed.
REVIEW OF FOREIGN RELATIONS.
Among the events of this year that which seemed pregnant with the most important consequences to Europe, was the death of the Emperor Alexander of Russia. This appeared capable of putting not only the tranquillity of the empire in jeopardy, but of changing the whole course of its foreign policy. This event however, was not felt beyond the limits of Russia; the grand duke Nicolas succeeded to the throne, and professed a determination to pursue that course of policy which had been adopted by his predecessor. France was this year occupied in the coronation of its monarch, whom the people was soon again to repudiate. Sweden, Denmark, and Germany remained without much alteration of circumstances; but Spain was not only in the possession of foreign troops, but was distracted by the miseries of factions, revolts, and changes of administration. In Portugal, the king was induced, chiefly through British influence, to recognise the independence of Brazil, the sovereignty of which was ceded to his eldest son, Don Pedro. The interior state of Brazil, however, was much disturbed by the tyrannical, conduct of its new emperor, and war was also commenced between Brazil and Buenos Ayres. In Italy and Austria all were tranquil; but the relations between Turkey and Russia still continued to be in a very critical state, though no hostilities were commenced on either side. Greece was torn by internal dissensions, and assailed by barbarian foes, who reduced Navarino, and invested Missolonghi. In the United States, Mr. John Quincy Adams was chosen president; and in South America the various republics were proceeding to consolidate their power, though Chili was much disturbed, and Paraguay had fallen under the tyranny of D Francia. The independence of the united provinces of Rio de la Plata was formally recognised by Great Britain, and a treaty of commerce and friendship was concluded between the two powers. A treaty of amity and commerce was also concluded with the congress of Columbia, and with the new sovereign of Brazil.